Gold nears Rs 1.60 lakh, silver crosses Rs 2.4 lakh: What should investors do now?

Gold and silver prices moved higher on Thursday as easing US Treasury yields and a recovery in global equity markets improved investor sentiment. However, the unresolved US-Iran situation and firm crude oil prices continue to keep risks elevated.At the time of writing, MCX gold was trading at Rs 158,284 per 10 gm, up 0.18%, while MCX silver was at Rs 240,060 per kg, higher by 1.33%.GOLD REMAINS CLOSE TO RECORD LEVELSGold continues to attract buying interest after its recent sharp rally. Lower US Treasury yields generally support gold because the metal becomes more attractive compared with interest-bearing assets.Ponmudi R, CEO of Enrich Money, said gold has extended its breakout after crossing the Rs 158,000 level. “MCX Gold opened at Rs 158,008 and is trading near Rs 158,499, up by +0.32%, extending its breakout to fresh highs after clearing the Rs 158,000 zone in the previous session,” he said.According to Ponmudi, a sustained move above Rs 158,600 could take gold towards the next resistance levels of Rs 160,000-160,500. If the rally continues, the price could move towards Rs 162,000. However, investors should also watch the downside. Immediate support for gold is seen at Rs 156,500-156,000, followed by Rs 154,000-153,300.The Relative Strength Index (RSI) is at 71.33, indicating that gold is in overbought territory. This does not necessarily mean that prices will fall, but it suggests that a short pause or a mild correction would be healthy after the recent rally, Ponmudi said.SILVER ALSO HOLDS ABOVE Rs 2.4 LAKHSilver has also gained momentum and is now trading above the important Rs 240,000 per kg mark.Ponmudi said MCX silver opened at Rs 238,500 and was trading near Rs 240,108, up 1.40%, after steadily climbing over the past two weeks.The next important resistance is around Rs 241,000. A sustained break above this level could push silver towards Rs 245,000-246,000 and eventually Rs 250,000.On the downside, Rs 235,000-234,000 is the immediate support zone, while the next support is around Rs 230,000-229,000.“RSI at 60.52, rising, reflects steady bullish momentum. Bias stays constructive above Rs 240,000, with a hold needed to extend gains toward Rs 245,000; a slip below Rs 240,000 risks a pullback toward Rs 235,000,” Ponmudi said.US-IRAN TENSIONS REMAIN A KEY RISKWhile softer US Treasury yields and stronger global equities have improved overall risk sentiment, geopolitical uncertainty has not gone away.The US-Iran situation remains unresolved, keeping investors cautious. Crude oil remains the biggest domestic risk factor because a sustained rise in oil prices can increase India's import bill and add pressure on inflation.For gold, geopolitical tensions can provide additional support as investors often turn to the precious metal during periods of uncertainty. However, a sharp rise in oil prices could create broader pressure across financial markets.WHAT SHOULD INVESTORS DO NOW?Investors should avoid chasing gold and silver after a sharp rise in prices. Both metals remain in a strong uptrend, but their recent gains also increase the possibility of short-term profit-taking.For existing investors, holding positions while keeping an eye on key support levels may make sense. For fresh investors, staggered buying is generally more prudent than putting a large amount of money into gold or silver at once.Gold investors should watch the Rs 158,000 level closely, while silver investors should track the Rs 240,000 mark. A sustained move above the resistance levels could open the door to further gains, but a break below key supports could trigger a short-term correction.The bigger picture remains positive, but investors should remember that precious metals can be volatile, particularly after a strong rally. A long-term allocation based on individual financial goals and risk appetite is more important than trying to predict every short-term price move.(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)- EndsPublished By: Jasmine anandPublished On: Aug 20, 2026 10:53 IST